Acta Universitatis Danubius. Œconomica, Vol 11, No 5 (2015)

Abstract

This study investigates the structure of the private equity industry and issues that impact on its development and growth in Zimbabwe, using document analysis and exlaratory approach. The study finds that the venture capital industry in Zimbabwe mimics similar industries in other countries except that it is constraint by market liquidity. Lack of regulation and viable business sectors coupled with excessive risks in the political economy narrows the scope of private equity operations. Several issues impacting on the development of the private equity industry are identified and evaluated. This study provides new evidence on the operations of the private equity industry in a liquidity constrained and less developed economy. The study has policy implications that could assist in the development of the private equity industry.